IRS retirement plan contribution limits
Each year, the IRS announces cost-of-living adjustments to contribution limits for retirement savings plans — 401(a), 401(k), 403(b), and 457(b), along with health savings accounts (HSAs). The limits are listed in charts that appear by selecting the tabs below.
Log in to your employer’s retirement savings plan to review your current contribution amounts or to make any changes. If you’re contributing less than the applicable IRS limit, consider increasing your contribution rate so you’ll be better prepared for the financial future you deserve.
Save more in 2025 if you turn 60-63 during the calendar year. The IRS already permits you to make catch-up contributions above the standard contribution limit starting in the year you turn 50. Under the SECURE 2.0 Act, effective January 1, 2025, if you turn ages 60-63 during the calendar year, you may be able to contribute a higher catch-up contribution. The higher limit is equal to $11,250 in 2025.
Deferral and Catch-Up Limits
401(k), 403(b), certain 457(b) Plans
| 2025 | 2024 | |
|---|---|---|
| Age 49 and under | $23,500 | $23,000 |
| Age 50-59 and 64+ catch-up* | Additional $7,500 | Additional $7,500 |
| Age 60-63 catch-up* | Additional $11,250 | Additional $7,500 |
| 403(b) 15 years of service catch-up** | Up to an additional $3,000 | Up to an additional $3,000 |
| 457(b) special election catch-up*** | Up to an additional $23,500 | Up to an additional $23,000 |
* Age 50+ before year-end. If you participate in a 457(b) plan, the age 50+ catch-up is only available if a governmental employer sponsors the plan.
** The 15 years of service catch-up may apply to employees participating in a 403(b) tax-deferred annuity who have had at least 15 years of service with an educational organization, hospital, home health agency, health and welfare service agency, church or convention or association of churches. The additional catch-up cannot cumulatively exceed $15,000 throughout the 403(b) participant’s lifetime. The additional catch-up requires a calculation to determine the available amount. If you’re a 403(b) participant who is eligible for both the 15 years of service catch-up and the age 50+ catch-up in the same year, the Internal Revenue Code requires you to first contribute the maximum permitted under that year’s 15 years of service catch-up before contributing under the age 50+ catch-up.
*** This special election catch-up applies to employees participating in an eligible governmental 457(b) deferred compensation plan who have elected the special catch-up available in the three years prior to the year of normal retirement age. If you’re eligible for both the age 50+ catch-up and the special election catch-up under your 457(b) plan, IRS rules do not permit you to use both in the same calendar year. IRS rules allow you to use the catch-up that produces the greater amount.
IRS Section 415(c) Limits
The total amount you and your employer can contribute to a 401(a), 401(k), or 403(b) plan.
| 2025 | 2024 | |
|---|---|---|
| Defined contribution plan annual additions limit* | $70,000 | $69,000 |
| Defined benefit plan maximum annual benefit | $280,000 | $275,000 |
* Defined contribution annual additions limit does not include any age 50+ catch-up made in that year.
Compensation Limits
401(a), 401(k), and 403(b) Plans
Maximum individual compensation recognized for determining contributions.
| 2025 | 2024 | |
|---|---|---|
| General limit for compensation | $350,000 | $345,000 |
Highly Compensated Employee for 401(a), 401(k), and 403(b) Plans
Check with your plan. The definition of a highly compensated employee may vary based on plan design and employee population.
| 2025 | 2024 | |
|---|---|---|
| Annual compensation threshold of at least | $160,000 | $155,000 |
Retirement Savings Contributions Credit (Saver’s Credit)
You may qualify for a tax credit on your federal tax filing of up to $1,000 for the first $2,000 you contribute to a qualified plan (reduced by any distribution from the plan during that year).
2025 Saver’s Credit
The credit amount depends upon:
- Your adjusted gross income (AGI) reported on form 1040/1040A
- Income tax filing status – single, head of household, or married filing jointly
- The amount you contributed to your IRA or employer-sponsored retirement plan in that tax year
Calculate Your Credit
The credit phases out based on your federal income tax filing status and AGI.
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $47,500 | AGI not more than $35,625 | AGI not more than $23,750 |
| 20% of your contribution | $47,501 – $51,000 | $35,626 - $38,250 | $23,751 – $25,500 |
| 10% of your contribution | $51,001 – $79,000 | $38,251 - $59,250 | $25,501 – $39,500 |
| 0% of your contribution | More than $79,000 | More than $59,250 | More than $39,500 |
* Single, married filing separately, or qualifying widow(er).
Health Savings and Spending Account Limits
To be eligible to contribute to a health savings account (HSA), you must be enrolled in an eligible high-deductible health plan (HDHP).
| 2025 | 2024 | |
|---|---|---|
| Self-only HSA | $4,300 | $4,150 |
| Family HSA | $8,550 | $8,300 |
| Age 55+ catch-up* | Additional $1,000 | Additional $1,000 |
* Age 55+ before year-end.
Flexible Savings Account (FSA) Annual Contribution Limits
| 2025 | 2024 | |
|---|---|---|
| Healthcare FSA | $3,300 | $3,200 |
| Limited Purpose FSA | $3,300 | $3,200 |
| Dependent Care FSA | $5,000* $2,500** | $5,000* $2,500** |
* Married filing jointly or single filing as head of household.
** Married filing separately.
Traditional and Roth IRA
| 2025 | 2024 | |
| Age 49 and under | $7,000 | $7,000 |
| Age 50 and older* | Additional $1,000 | Additional $1,000 |
| Roth IRA income phase-out for married couples filing jointly | $236,000 - $246,000 | $230,000 - $240,000 |
| Roth IRA income phase-out for single filers | $150,000 - $165,000 | $146,000 - $161,000 |
* Age 50 and older before year-end.
Definitions for Cost-of-Living Adjustments
Get more details about specific terms
Annual deferral limit for 401(k), 403(b), and 457(b) plans
The limit on elective deferrals (including Roth contributions) a participant may make during the calendar year.
SIMPLE retirement plans
The limit on elective deferrals a participant may make during the calendar year for the SIMPLE (Savings Incentive Match Plans for Employees of Small Employers) Retirement Plan.
Catch-up contributions
Age 50+ for 401(k), 403(b)* and 457(b)* — Participants 50 and older may make catch-up contributions (including Roth contributions) — after the elective deferral limit has been reached — up to the annual catch-up limit, if the plan permits.
Age 50+ SIMPLE Retirement Plan — If the plan permits, participants 50 and older may make additional deferred contributions — after the elective deferral limit has been reached — up to the annual catch-up limit.
*A special additional catch-up limit applies for certain employees enrolled in 403(b) and 457(b) plans.
IRS Section 415(c) limits
Defined Contribution Plans — The total of all employer and employee contributions to the plan for the 12-month limitation year (as defined in the plan document).
Defined Benefit Plans — The maximum annual benefit participants may receive.
Compensation limits
General compensation limit — The maximum compensation that may be considered when determining contributions for the plan year (as adjusted for inflation).
Special compensation limit for governmental plan participants enrolled before the 1996 plan year — The maximum compensation that may be considered when determining contributions for the plan year (as adjusted for inflation).
SEP eligibility — The minimum compensation taken into account when determining which employees are eligible for a simplified employee pension (SEP) plan (as adjusted for inflation).
Highly Compensated Employee (HCE)
Any participant who owns 5% or more of the business at any time during the current or preceding year and/or any participant whose compensation in the preceding year is greater than the annual compensation limit (as adjusted for inflation). The current year’s limit is used when considering a look-back to the prior year.
Adjusted gross income (AGI) for Saver's Tax Credit
The highest AGI an individual may have to be eligible for a tax credit on their federal tax filing, based on filing status.
Health Savings and Spending Accounts
Health Savings Account (HSA) — An employer-sponsored plan that can be used to pay for qualified medical expenses — now or in the future — when paired with a high-deductible health plan. HSAs are funded with pre-tax dollars deposited into an individual account by an employee or the employer, usually through payroll deduction.
Transamerica and its agents and representatives do not provide tax or legal advice. This material is for informational purposes only and should not be construed as legal or tax advice. For legal or tax advice concerning your situation, please consult your attorney or tax professional.